Wednesday, November 11, 2015

Friday
was a good day for the U.S. dollar. Jumping to a seven month high, the
greenback enjoyed a notable increase in value thanks to new job data. The job
report indicated unemployment is now at 5%, the lowest economically viable
rate. The U.S. has not seen such data since April of 2008, suggesting America
is finally finding solid ground. For much of the year now, monetary policy
conversation has swirled around a possible interest rate hike by the Fed. No
one is certain of a rate increase in December, but the futures market indicates
a 75% chance, while financial experts range from skeptical to near certain. I
wrote earlier in the year that America should wait on the Fed rate, and the
country was not yet on sure footing. New job data, especially in the face of
global economic conditions, suggest we might finally be back on track.[more...]